| Cash in Bank | $3,500.00 | |
| Personal Accounts | Debit Balances | 6,500.00 |
| Cash in Office | 200.00 | |
| Personal Accounts | Credit Balances | 2,500.00 |
An inventory results as follows:
| Coal | 3,750.00 |
| Horses and Wagons | 800.00 |
| Furniture and Fixtures | 300.00 |
Make necessary journal entries to change to double entry. Provide a reserve of 5% for uncollectible accounts, 10% for depreciation of horses and wagons, 10% for depreciation of furniture and fixtures. Declare a dividend of 10% and transfer balance of profits to surplus, making all journal entries to record these transactions.
11. Prepare a model trial balance of an imaginary business, or one with which you are familiar, giving special attention to the proper grouping of the accounts. Explain the benefits of your grouping of the accounts.
12. What is a working balance sheet? From the trial balance, which you have prepared, make up a working balance sheet, supplying such additional figures as may be necessary.
13. What are the fundamental advantages of comparative statements? On what basis should percentages be figured in on analysis of the manufacturing account? of the trading account?
14. To prove the accuracy of the ledger without a trial balance, what steps are necessary? What test is applied to determine whether the ledger balances?
15. What is meant by a book inventory? How can the receipts be determined? the disbursements or quantities sold?
16. What is the reverse or slip posting system? How is it operated?